The Tokyo District Court said Tuesday it will start bankruptcy procedures for moneylender SFCG Co., which filed for protection from creditors and rehabilitation in February, a lawyer for the firm said.
After filing for rehabilitation with liabilities of ¥338 billion amid the financial crisis, SFCG chose to shift to bankruptcy in response to accusations it had sold the same loan claims to different parties.
SFCG Chairman Kenshin Oshima is also suspected of selling sound loan claims to affiliates to prevent seizure.
Lawyers for the borrowers, who want reimbursement for excessive interest charges, filed a suit in March.
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